Correlation Between Fortuna Silver and Barrick Mining
Can any of the company-specific risk be diversified away by investing in both Fortuna Silver and Barrick Mining at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fortuna Silver and Barrick Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortuna Silver Mines and Barrick Mining, you can compare the effects of market volatilities on Fortuna Silver and Barrick Mining and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fortuna Silver with a short position of Barrick Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and Barrick Mining.
Diversification Opportunities for Fortuna Silver and Barrick Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fortuna and Barrick is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines and Barrick Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barrick Mining and Fortuna Silver is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fortuna Silver Mines are associated (or correlated) with Barrick Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barrick Mining has no effect on the direction of Fortuna Silver i.e., Fortuna Silver and Barrick Mining go up and down completely randomly.
Pair Corralation between Fortuna Silver and Barrick Mining
Considering the 90-day investment horizon Fortuna Silver Mines is expected to generate 1.5 times more return on investment than Barrick Mining. However, Fortuna Silver is 1.5 times more volatile than Barrick Mining. It trades about 0.05 of its potential returns per unit of risk. Barrick Mining is currently generating about 0.07 per unit of risk. If you would invest 610.00 in Fortuna Silver Mines on March 26, 2025 and sell it today you would earn a total of 51.00 from holding Fortuna Silver Mines or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortuna Silver Mines vs. Barrick Mining
Performance |
| Timeline |
| Fortuna Silver Mines |
| Barrick Mining |
Fortuna Silver and Barrick Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortuna Silver and Barrick Mining
The main advantage of trading using opposite Fortuna Silver and Barrick Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortuna Silver position performs unexpectedly, Barrick Mining can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Barrick Mining will offset losses from the drop in Barrick Mining's long position.| Fortuna Silver vs. Pan American Silver | Fortuna Silver vs. Harmony Gold Mining | Fortuna Silver vs. IAMGold | Fortuna Silver vs. Kinross Gold |
| Barrick Mining vs. Royal Gold | Barrick Mining vs. Agnico Eagle Mines | Barrick Mining vs. Sandstorm Gold Ltd | Barrick Mining vs. Osisko Gold Ro |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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